Peruvian Economy Contracts for the First Time since June 2001

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By: Johan van Ginhoven

June 15. – The Peruvian economy suffered its first fall since June 2001, affected by a contraction of the sectors linked to internal demand, at a time when the global financial crisis is hitting the country, according to the Government.
Peruvian economic activity fell 2.01 percent in April compared to the same month last year, confirming a foreseeable deceleration after a few years of consecutive positive results.
Likewise, the local economy accumulated a growth rate of 0.93 percent between January and April, while during the last twelve months it expanded 6,4 percent, according to the National Statistics Institute (INEI).

Accordingly, the manufacturing sector – which generates the bulk of employment – fell 13,64 percent, while fisheries fell 24,19 percent. Meanwhile construction, the most dynamic sector in the last few years, contracted by 1,48 percent and commerce fell by 2,29 percent.

However, mining and hydrocarbons expanded 2,77 percent. Peru is an important world exporter of minerals like copper, zinc, gold and silver.

INEI explained that the fall in April, compared to same month last year, was due to a statistical effect because the month had two working days less on account of Holy Week.

Last week, the Central Bank (BCR) revised downwards its economic projections and estimated a growth rate of 3,3 percent for this year, less tan the previous estimate of 5,0 percent, after last year’s expansion of 9,8 percent, one of the highest in the world.

Photo: Living in Peru.com

Tags Blogalaxia: Peru, Peruvian Economy, Economic Crisis.

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